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Playtech Enters Into Agreement With Playtech

Friday July 24,2015  : CORAL MERGER RESULTS IN LADBROKES-PLAYTECH AGREEMENT CHANGES
 
Early determination of amounts due under PTTS/Ladbrokes services deal agreed.
 
Playtech announced Friday that it has entered into an agreement with Ladbrokes plc in relation to an early determination of amounts due to it under the marketing services agreement between PTTS and the Ladbrokes Group dated March 2013 at a level of £75 million.
 
This agreement has been reached in anticipation of the proposed merger of the Ladbrokes Group and the Coral Group announced earlier today and is conditional upon completion of the merger.
 
With effect from completion, Playtech shall become entitled to receive £75 million, of which £40 million shall be satisfied by way of the issue of shares in Ladbrokes and with a further guaranteed £35 million in cash paid upon delivery by Playtech of key operational milestones but, in any event, within 42 months following completion.
 
This arrangement will provide Ladbrokes and Coral with the flexibility to achieve operational integration and realise synergies.
 
If completion of the merger does not occur, the marketing services agreement shall continue in its prior form.
 
Separately, Playtech has committed to subscribe for approximately 22.9 percent of the 9.99 percent equity placing announced by Ladbrokes earlier today.
 
Mor Weizer, CEO of Playtech said Friday:
 
"Both Ladbrokes and Coral are key licensees of the [Playtech] Group and we have been delighted to assist Ladbrokes in the turnaround of its online operations. We look forward to continuing our strong long term relationships with both groups and expect to play a key role in their future success, both before and after their proposed merger."



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